6. The values of beta coefficients of securities are A. always positive B. always negative C. always between positive 1 and negative 1 D. usually positive but are not restricted in any particular way 7. To construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of A. -0.5 B. 0.0 C. 0.5 D. -1.0 8. Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is A. 1 B. less than 1 C. between 0 and 1 (and therefore not negative) D. less than or equal to 0 (and therefore not positive) 9. Which of the following provides the best example of a systematic-risk event? A. A strike by union workers hurts a firm's quarterly earnings, B. Mad Cow disease in Montana hurts local ranchers and buyers of beef. C. The Federal Reserve increases interest rates 50 basis points. D. A senior executive at a firm embezzles $10 million and escapes to South America